The closer a residential lease in Barton under Needwood gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Barton under Needwood will qualify for this right; nevertheless a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Barton under Needwood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barton under Needwood valuers.
After unsuccessful correspondence with the landlord of her purpose-built flat in Barton under Needwood, Mia commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension completed in August 2011. The freeholder’s costs were restricted to a tad over 600 GBP.
Last Winter we were phoned by Dr Isaac Cook , who was assigned a lease of a ground floor apartment in Barton under Needwood in August 2006. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable flats in Barton under Needwood with a long lease were valued about £300,000. The average ground rent payable was £50 invoiced yearly. The lease terminated in 2102. Having 76 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr Benjamin Harris purchased a ground floor apartment in Barton under Needwood in November 2005. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar residencies in Barton under Needwood with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced quarterly. The lease expired on 21 October 2091. Given that there were 65 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.